Take care when dismissing your employee: avoid costly mistakes

If you are going to terminate an employee, there are important steps to complete. Some are tasks to meet your legal obligations as an employer. Others will help protect your firm from financial implications that might arise from the termination.

From our 40 years of helping CFIB members just like you, our Business Resources team has insights and tips to help you handle this decision well. You are invited to contact one of our Business Counsellors at any time by calling 1-888-234-2232.

CFIB Business Resources

Three things entrepreneurs wish they had known

Warning: The information piece Reducing Employment Termination Exposures (linked to the top right-hand side of this page) contains general information based on the Common Law. Therefore, it cannot be applied to the province of Québec. 

 

Are you planning a layoff due to a slow economy? Could Work-Sharing be an alternative for your company?
Before you lay off staff due to a business downturn, see if they would agree to a Work-Sharing arrangement. Employment Insurance premiums help cover lower wages when the company's work week is reduced. It's a win-win situation: you keep your staff and they avoid the hardship of being laid off. Visit Work-Sharing to learn more.

 

What are the steps in terminating a worker?
Certainly you need to follow Statutory Law (minimum requirements according to the employment standards laws) specific to termination. Click on the province/territory below to learn more.

 

The attached information piece, Reducing Employment Termination Exposures provides valuable insight as well, except in the province of Quebec. We highly recommend you lay the proper groundwork when first hiring an employee.

You may also need to consider Common Law, especially if the worker is a longer-term employee. Depending on the circumstances of the employee (age, skills) and of the employment (position, salary, length of service) the Common Law notice of termination requirement may be as short as the Statutory requirement or as long as two years.

 

Dismissing your employee

Dismissing your employee

Do I need to issue a Record of Employment (ROE)? How is this done?
Regardless of whether or not your employee plans to apply for EI benefits, you must prepare an ROE. See table for deadlines issuing ROEs.

Visit this Service Canada site to learn more about ROEs and/or to follow step-by-step instructions on how to complete the form.

 

Where can I learn more?
CFIB's Business Counsellors are available to answer your questions. Contact them at cfib@cfib.ca or by calling 1-888-234-2232. 

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